Yes, accuracy is something I'm not too worried about with the minute resolution of the clock, the same doesn't apply to hour, or using the same UI control for AM/PM, which means you now have 3 datasets applied to the same UI pattern, 1-12, 1-59, AM-PM... I really like their keyboard (it does it's job very effectively), don't like the time picker.

Also, for something as utilitarian as an alarm clock interface, (something I may want to change while half asleep), I would sacrifice any 'fun' aspects of setting the alarm for a predictable interface. Inaccurate & slower for me is going backwards in usability.

Yes it is a problem, and seems to be taking us backward in terms of usability. Apple is the worst for this, imo, their iPhone interface for setting an alarm is abysmal, hard to use with any accuracy, because you're sliding dials around, which have physics attached to them. So instead of being able to type in: 7, 3, 0 on a keypad, you're forced to deal with 3 different dials, pushing up & down until it gets it right. (It also stinks of 'hey, lets use multitouch for EVERYTHING).

Also, accessibility takes a hit, as you're now dealing with pictures of physical things, and all people are left with are the equivalent of ALT tags on images with image maps.

By putting: "Think of how great this would be at sporting events or family reunions!" at the end of the summary you've guaranteed a fucked discussion, way to fucking go. Lets not discuss this, just talk about how fucked up it would be to have these at sporting events and the hilarity that would ensue.